Ocado has begun the search for a new chief executive to replace co-founder Tim Steiner, whose 26-year tenure has seen the grocery delivery firm's shares fall significantly from their peak. The company confirmed that Steiner and the board are continuously engaged in long-term succession planning and regularly interact with potential candidates, although they have downplayed suggestions of an immediate leadership change.
According to Sky News reports, Adam Warby, Ocado's chairman, is leading the search process. Niklas Heuveldop, the CEO of Vonage (an Ericsson subsidiary), has been approached as a potential successor to Steiner. This comes as Ocado's shares plunged to their lowest value in 13 years, now standing at 172.60p, representing a 93% decrease since their September 2020 peak during the COVID-19 pandemic.
Investors have grown impatient due to a lack of new technology deals and expansion with existing partners. Ocado, which sells technology for robotic warehouses and operates a grocery firm with Marks & Spencer, has faced setbacks, including partner closures in the US and Canada. The change in leadership is being sought to stabilize the company and potentially diversify revenue, especially after recent contractual issues with partners like Carrefour and Albert Heijn, and an ongoing financial dispute with M&S over a $190 million payment.
